PNC Financial Group Begins Reducing Workforce by 4%

PNC Financial Group began staff reductions that will decrease its workforce by 4%.

The move is expected to reduce the company’s 2024 expenses by $325 million at a time when it is focused on expense management, “particularly in the current environment,” PNC Financial Group Chairman, President and CEO Bill Demchak said Friday (Oct. 13) during a quarterly earnings call.

The layoffs began on Oct. 6, according to a presentation released in conjunction with the call.

“While decisions involving personnel are never easy, we believe they will help us more effectively and efficiently deliver for our customers and our stakeholders, and we’ll continue to be diligent in our expense management going forward,” Demchak said on the call.

The company announced the move as it shared its third-quarter results, which included a 1% decline in revenue, a 1% decrease in average deposits and a 2% drop in average loans compared to the previous quarter, according to a Friday earnings release. The company also said its expenses decreased 4% during the quarter.

“PNC delivered strong results in the third quarter,” Demchak said in the release. “We generated positive operating leverage, controlled expenses well, maintained strong credit quality and further increased our capital levels. The strength of our balance sheet positions us well for the current economic environment, inclusive of proposed regulatory changes.”

PNC’s job cuts come on the heels of several other workforce reductions in the banking sector.

For example, it was reported Oct. 4 that Citi is currently reviewing staff rosters to determine who will be retained, reassigned or laid off in November as part of the bank’s previously announced reorganization. Citi did not specify the expected number of job cuts.

Meanwhile, Wells Fargo Chief Financial Officer Mike Santomassimo said Sept. 12 the bank could make further layoffs as it seeks to improve efficiency. Wells Fargo had already trimmed its workforce by nearly 40,000 since the third quarter of 2020.

Barclays CEO C.S. Venkatakrishnan said Sept. 11 that the bank expects to cut hundreds of jobs in a plan that is in line with what is happening in the broader financial industry.